Cloud computing involves storing and accessing data and programs over the Internet instead of a local computer's hard drive. It has a front-end and back-end connected through a network, usually the Internet. The back-end consists of data centers containing distributed servers that act as a single system. There are three main types of cloud services: Infrastructure as a Service (IaaS) provides basic storage and networking; Platform as a Service (PaaS) provides development tools; and Software as a Service (SaaS) provides complete applications that users access through a web browser. Cloud computing offers advantages like lower costs, improved performance and collaboration capabilities, but also risks like dependence on constant network access and potential security issues.